GGRAsia – Industry, investor horror at Okada Manila events: Ader

Industry, investor horror at Okada Manila events: Ader

Jun 14, 2022 Newsdesk Latest News, Philippines, Top of the deck

The physical takeover of the Okada Manila casino resort in the Philippine capital, by interests tied to its previously-ousted founder Kazuo Okada, had “horrified” the industry and the investment community around the world, said Jason Ader, chairman and chief executive of 26 Capital Acquisition Corp, in comments to GGRAsia.

The latter firm is aiming to complete – in concert with Japanese conglomerate Universal Entertainment Corp – a deal that would see the Okada Manila business listed on Nasdaq.

On Friday, Universal Entertainment flagged a likely three-month delay – to September 30, from June 30 – to the deadline for one its units to merge with 26 Capital for the listing. Such extension would have to be agreed by 26 Capital.

Universal Entertainment said the reason was that on that on May 31 “a group acting under the direction of Mr Okada, intruded into the Okada Manila facility operated by TRLEI [Tiger Resort, Leisure and Entertainment Inc] and usurped the facility and its operation.”

Mr Ader said in his Monday remarks to GGRAsia, in an emailed response to questions: “We are confident this [incident] will not impact the timing of the merger as we have faith that the Philippine government authorities and courts will step in to restore normality so that the lawful management can continue successful operations.”

He added: “Important industry veterans and investors are watching from Macau and Las Vegas, and they are shocked and appalled.”

“I am hopeful that the Philippine government authorities and courts will take judicial notice of all this violence and illegalities that have transpired,” Mr Ader said, adding that his firm was “hopeful that this matter will be resolved very soon”.

Mr Okada’s side has denied that violence was employed in the May 31 entry to the Okada Manila resort.

Mr Ader made reference to the ability of the incoming administration of President-elect Ferdinand Marcos Jr, and the nation’s casino regulator, the Philippine Amusement and Gaming Corp (Pagcor), to bring their influence to bear in restoring the management to how it was prior to the May 31 event.

He said: “These issues can all be easily addressed by the incoming administration and local gaming regulators by restoring the lawful management team.”

Mr Ader added: “This would make clear to the public in the Philippines and overseas – as well as prospective investors locally and in the U.S. – that the Philippines remains open and safe for tourism and business and that unlawful thuggish behaviour will not be tolerated.”

Who exactly controls the TRLEI entity is currently being disputed by steps including civil court action and criminal complaint.

Universal Entertainment has said the group has filed a motion to the Philippine Supreme Court seeking to overturn a so-called ‘status quo ante order’, that had said the TRLEI board could be restored to how it was before Mr Okada had been ousted in 2017 amid allegations – denied by him – of fraud.

Universal Entertainment has also said it has “filed criminal charges“ with the Department of Justice of the Philippines for “offences,” relating to the physical takeover of Okada Manila by Mr Okada’s side.